Income statement for Gaidar Company for 2014 and 2015 follow:

GAIDAR COMPANY

Income Statement20152014Sales$201,500$181,500Cost of goods sold142,200120,200Selling expenses20,80018,800Administrative expenses12,40014,400Interest expense3,9005,900Total expenses$179,300$159,300Income before taxes22,20022,200Income taxes expense6,6003,300Net income$15,600$18,900

Income statement for Gaidar Company for 2014 and 2015 follow: GAIDAR COMPANY Income Statement 2015 2014 Sales $201,500 $181,500 Cost of goods sold 142,200 120,200 Selling expenses 20,800 18,800 Administrative expenses 12,400 14,400 Interest expense 3,900 5,900 Total expenses $179,300 $159,300 Income before taxes 22,200 22,200 Income taxes expense 6,600 3,300 Net income $ 15,600 $ 18,900 Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2014 and 2015. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4).) GAIDAR COMPANY Horizontal Analysis of Comparative Income Statement Percentage Change over 2014 Sales % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income (loss) %b. Perform a vertical analysis, showing each income statement component as a percent of sales for each year. (Percentages may not add exactly due to rounding. Round your answers to 1 decimal place. (i.e., .234 should be entered as 23.4).) GAIDAR COMPANY Vertical Analysis of Comparative Income Statement Percentage of Percentage of Sales 2015 Sales 2014 Sales % Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income